Forum >> Trend turns, data provider failure (archive)

Yes, we are making special efforts to provide our subscribers useful guidelines how to trade the forex market. The markets are nearing to inflexion points in the indicated crosses, we may have new signals as soon as tomorrow. Such short-term trends tend to turn on Thursday, when the US markets open (afternoon hours CET). So stay tuned and watch the market action!

Silvertrader

Hello Silvertrader

This "Alert-Mail" tonight is very helpfull and an improvement of you Service.

Thank you

Edi

Unfortunately we were unable to generate signals after the Wednesday (Nov.24.) close, as our data provider failed to deliver the data (daily open, high, low and close prices).

Based on the price action of the previous weeks and our experience, a trend turn was imminent, but as we did not have any real signals we did not inform our subscribers. In retrospect, this may have been a mistake, so we will send forewarning e-mail alerts in the future when we expect a trend turn soon. However, do not treat these as signals! You may trade such kind of market opinion of ours, but never forget that you are risking your own capital! Patience is one of the traders' most important virtues.

The reason why we thought that a trend turn in Gold (and it's currency proxy, the EURUSD) was imminent was the fact that gold formed an almost perfect ABC bear market correction within a larger expanded flat pattern, according to the Elliott Wave rules. Rising from the 2008 bottom of US$680, Gold topped at 1,007, a move of 327 points. Then it corrected back to 864, forming a small double bottom, and was on the rise until yesterday, the Thanksgiving Day of 2009 when it topped at 1,195, a 331 points distance from the previous intermediate low. Meanwhile, both Silver and the precious metal shares failed to make new highs, which showed that this rising trend was not the "real thing".

Accordingly, we went short at 1,188, just a couple of points below the top, so right now we are sitting in a very comfortable short position with decent profits (see more under Charts). But it was our own money at risk here, and without the signals we decided rather not to alert our subscribers.

But don't be discouraged, though. First, you can go short in Gold or EURUSD at any bullish retracement, as a further drop is expected in the coming days or weeks, as market participants are getting more and more risk averse and the recessionary deflation tightens its grips on the economy and the markets. The only scenario that would change the current market landscape could be if the Obama administration launches a new trillion-dollar stimulus package, which we doubt.

Secondly, there will be a lot more very profitable signals in the future. If you check out the current active signals in the members area you will see that all of them are in profit and most of them are up to several hundred pips. We have been holding some of the positions since Oct.19, and see even more potential in them. For example, the USDJPY has broken the long-term support at 87, one that stopped a decline in December, at the height of last year's deflationary collapse and held at the re-test in January as well.

We seem to face a very exciting year-end and many opportunities at the forex markets.

Happy Trading!

Silvertrader